Even though the ads are gone and the election season is over (for now), the distorting impact of all that ad money permeates our entire political process.
Before the Great Recession, the financial sector had consistently been eating up a greater and greater share of the economy. In 2007, it accounted for a whopping 40 percent of corporate profits. Before 1950, the financial sector made up less than 3 percent of GDP; now it makes up more than 8 percent.
WASHINGTON (MarketWatch) — Massachusetts Senator-elect Elizabeth Warren is likely to focus her efforts on the Senate Banking Committee in areas that go far beyond her bread-and-butter expertise in consumer protection, analysts say.
Not since the years before the Watergate scandal has a small cadre of mega-donors influenced our elections as much as wealthy givers such as casino tycoon Sheldon Adelson, DreamWorks Animation CEO Jeffrey Katzenberg, Texas homebuilder Bob Perry, and Chicago media mogul Fred Eychaner did in 2012.
It falls into the good-luck-with-that category, but nevertheless the Wisconsin Public Interest Research Group and nine other organizations have announced they’re forming a coalition aimed at getting the Wisconsin Legislature to put an advisory referendum on the ballot about the growing problem of unlimited campaign spending.
The U.S. political system is increasingly gamed against Americans of modest means — a situation exacerbated in recent years by major changes in the nation's campaign laws.
Ever wonder why the government seems fine with cutting unemployment benefits and welfare programs? Part of the answer may be that the rich vote more than the poor.
Attorney General Eric Holder made it official in testimony before the Senate Judiciary Committee: Some banks are so big that criminal prosecution poses an unacceptable danger to the U.S. and world economies. This is not Holder's opinion alone. In the past, the Justice Department has consulted with the Federal Reserve, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to assess the consequences of criminal prosecution. This is a government-wide problem.
During an appearance on CNBC yesterday, Charlie Munger, deputy to billionaire investor Warren Buffett, had some harsh words for high-frequency trading, the practice used by huge financial firms to trade stocks in milliseconds. “Take the rapid trading by the computer geniuses with the computer algorithms,” said Munger. “Those people have all the social utility of a bunch of rats admitted to a granary.”
Though technology and innovation have squeezed trading costs, the industry's profits are accounting for a bigger share of U.S. GDP, a former Goldman banker says, needlessly diverting some $635 bln from the broader economy. It lends credence to ideas like a transaction tax.
The affluent tend to hold a different vision of a just society than the public at large, and it is that vision which tops the political agenda in Washington and in state houses across the country.
WASHINGTON -- A bipartisan cadre of House lawmakers will move on legislation to deregulate Wall Street derivatives Wednesday, less than a week after Sen. Carl Levin (D-Mich.) released adevastating report on the multibillion-dollar derivatives debacle at JPMorgan Chase.
You may have seen a big outbreak in the academic literature and business media of defenses of liquidity for liquidity’s sake, evidently prompted by increased interest in and in the EU, implementation of transaction taxes as a way to tame speculation and secondarily raise revenues.
In the latest anti-HFT salvo, a 12-year veteran of Goldman Sachs Monday applied a new definition to the essence of high frequency trading, seeing it as a purposeful distortion of the flow of market information rather than just a successful trading technique. With that he also prescribed a financial transaction tax as part of a cure.
Massive fraud in the high-speed trading markets is escaping detection because regulators and exchanges are dithering on a powerful supercomputer to uncover the scams, The Post has learned.
And as retail investors begin dipping their toes back into stocks, now at record prices, the market watchdogs are asleep at the wheel.
As New York policymakers, led by Gov. Andrew Cuomo, consider a comprehensive package of campaign finance reform, they should look at Connecticut to see just how much a strong small-donor public financing program can improve the legislative process and relieve lawmakers of the burdens of high-donor, special-interest fundraising.
As some New York state lawmakers consider publicly financed campaigns to thwart public corruption in state politics, a liberal-leaning public policy think tank has released a report showing how a voluntary public financing system in Connecticut has contributed to a more "representative and responsive" Legislature there since its implementation in 2008.
Fittingly, perhaps, Cuomo’s single biggest misstep in office can be tied to the power of moneyed interests. After fighting long and hard, the governor was forced to abandon a scheme to build a $4 billion convention center in Queens, as part of a joint venture with the Genting Group, a Malaysian corporation.